A more clear bearish pattern was displayed on the chart of the GBP/USD currency pair on Tuesday's trading yesterday as the US dollar found its strengthening rhythm again.
Although the strengthening was not significant, it was enough to sink the Pound lower again this week.
The decline of the US dollar at the end of last week when the reaction to the NFP employment data was published did not seem to continue, instead the US dollar reversed course to recover.
Market analysts assess that the focus is being placed back on the monetary policy of the Federal Reserve (Fed) with the views of Fed members also being hawkish, in line with Chairman Jerome Powell.
This situation has made the US dollar move stronger again, but the risk of weakening again remains after last week's warning of a declining jobs report.
Examining the GBP/USD chart, the decline was more evident yesterday after the price at the beginning of the week failed to reach the 1.26000 level.
Price movement below the Moving Average 50 (MA50) barrier line on the 1-hour time frame on the chart further strengthened the signal for price to make a decline which then reached around 1.25000 at the close of the New York session.
The price drop continued below the 1.25000 level in the Asian session this morning (Wednesday) but at a slow tempo.
A lower drop would be expected to lead to the next target at around 1.24000 before the support zone at 1.23000 awaits to be tested.
On the other hand, if the price manages to display a rise above the 1.25000 level, the target is to return to the 1.26000 resistance level before showing a bullish trend change signal.
A move higher will mark the latest high level over last week with the next focus being at 1.27000.
